Loan debt – PC Only Yazilim http://pconlyyazilim.com/ Thu, 20 Jan 2022 14:39:13 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://pconlyyazilim.com/wp-content/uploads/2021/11/profile-120x120.png Loan debt – PC Only Yazilim http://pconlyyazilim.com/ 32 32 Why hasn’t Joe Biden forgiven all your student loan debt? Short answer: he never promised to | Personal finance https://pconlyyazilim.com/why-hasnt-joe-biden-forgiven-all-your-student-loan-debt-short-answer-he-never-promised-to-personal-finance/ Thu, 20 Jan 2022 14:39:13 +0000 https://pconlyyazilim.com/why-hasnt-joe-biden-forgiven-all-your-student-loan-debt-short-answer-he-never-promised-to-personal-finance/ Debt forgiveness is an important tool in the fight against the student loan crisis, but it is certainly not the only one. The Department of Education has also been working to improve the income-based repayment options currently available to borrowers and has come up with a fifth scheme, although details are limited at this time. […]]]>

Debt forgiveness is an important tool in the fight against the student loan crisis, but it is certainly not the only one. The Department of Education has also been working to improve the income-based repayment options currently available to borrowers and has come up with a fifth scheme, although details are limited at this time.

Yet focusing on student debt, and loan forgiveness in particular, is what Dimino calls a primary approach to education affordability because it helps those who have already borrowed money to attend school. .

“There is no doubt that this provides tremendous relief, especially for borrowers who have not completed their studies or who have high needs after graduation,” she said. “But at the same time, debt cancellation would only look at one side of the problem.”

On the front end, Dimino said the administration also needs to prepare prospective students for financial success once they graduate. This includes ensuring tuition is affordable and students earn degrees that have real value in the job market.

And that’s what Biden will likely focus on in the coming year. Free community college was a proposal that didn’t make it into the (now stalled) Build Back Better plan, but it’s something Dimino said the president had expressed a desire to push through his term. Other proposals are also in the works, such as setting aside funds for retention and college completion efforts to ensure that students entering college actually cross the finish line.

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Loans are crushing graduates and leaving millions in debt https://pconlyyazilim.com/loans-are-crushing-graduates-and-leaving-millions-in-debt/ Mon, 17 Jan 2022 13:00:19 +0000 https://pconlyyazilim.com/loans-are-crushing-graduates-and-leaving-millions-in-debt/ KAMPALA, UGANDA — Alfred Ssekito is grateful for the government loan that enabled him to become the first member of his family to graduate from university. The problem is that the 25-year-old has no way to pay him back. He was granted a one-year grace period after graduating with a Bachelor of Education degree from […]]]>

KAMPALA, UGANDA — Alfred Ssekito is grateful for the government loan that enabled him to become the first member of his family to graduate from university.

The problem is that the 25-year-old has no way to pay him back.

He was granted a one-year grace period after graduating with a Bachelor of Education degree from Kampala International University in 2018. And he had to repay 130,000 Ugandan shillings ($37) every month, paying off his 7 million shillings ($1,968) student loan by 2024. But after failing to land a job as a secondary school teacher, he wins a monthly income of 600,000 shillings. ($169) by selling tomatoes – and has only made one loan repayment so far.

“I have to deprive myself of some basic needs to be able to repay this loan,” Ssekito says, adding that he has to help support three younger siblings. “It’s very hard for me.”

Uganda’s student loan scheme dates back to 2014, when parliament established the Higher Education Student Funding Council to make higher education more accessible to low-income youth. As of October 2021, approximately 11,000 students could borrow funds at an interest rate of 7% to attend 11 public universities, 11 private universities and 36 training programs. But of the roughly 3,000 who have completed their studies, only 30% are on track to repay their loans, says Bob Ambrose Nuwagira, spokesman for the council. The amount of money officials need to recover exceeds 32 billion shillings ($9 million), jeopardizing the entire scheme.

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Governments around the world are grappling with soaring student loan debt, as the share of college-age people enrolling in vocational colleges and universities has doubled from 20% to 40% in the past 20 years, according to data from the United Nations cultural organization, known as UNESCO. In the United States alone, outstanding federal student loan debt has tripled since 2007, reaching $1.6 trillion in 2020.

In Uganda, Ssekito wants to renegotiate its repayment terms, which Nuwagira says can be arranged on a case-by-case basis, especially for graduates in fields where the pandemic has severely limited job prospects. The government’s position is that any graduates who are struggling to repay their loans should notify the funding committee, he says, rather than allowing debts to pile up indefinitely.

But in light of the sheer number of outstanding loans, the council has launched more coercive efforts to seek repayments. These include contacting employers to hand over 30% of the salaries of loan recipients – and denying them passports and other government documents.

“What they repay pays for another cohort the following year,” says Nuwagira. “If they don’t pay, there will be no sustainability.”

Critics say the government should accept more responsibility for leading thousands of young adults to failure. Two of Uganda’s neighbors offer more lenient models: the Kenyan government subsidizes its student loan interest rates; Tanzania has eliminated penalties for defaulting loans.

“I have to deprive myself of some basic needs to be able to repay this loan.” University graduate

Deborah Kirabo, program manager at the Uganda Youth Network, a non-profit economic empowerment organization, said the student loan scheme faced challenges given the country’s high youth unemployment rate, cited at 13% in October by retired Colonel Okello Charles Engola Macwodogo, Ugandan Minister of State for Labour, Employment and Industrial Relations.

Even after earning diplomas or certificates beyond secondary level, the majority of Ugandan young adults end up working in the informal sector, Kirabo says, including domestic and agricultural work. For those who obtain positions requiring a university degree, earnings tend to be low during the first years of employment.

“How are they going to get the money back?” said Kirabo. “Even people who have studied science take time to find a job. How can someone repay if they cannot feed themselves or support themselves? »

Under the current loan process, applicants submit forms and are interviewed based on their academic qualifications, proposed study programs, and ability to afford tuition without assistance. Those determined to have low incomes and high academic potential are enrolled, with tuition fees covered by the loan. They still have to pay for their accommodation, food and any other needs.

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Apophia Agiresaasi, YPG Uganda

Edna Mubeezi, a nurse at CoRSU Rehabilitation Hospital in Entebbe, a town in central Uganda, paid off her student loan in two years. Other recipients have struggled to do so.

Not everyone is unhappy with the conditions. Edna Mubeezi credits her government loan with supporting her nursing education at Mulago School of Nursing and Midwifery. After graduating in 2017, she managed to pay off her 5 million shillings ($1,400) debt in two years, thanks to her monthly salary as a registered nurse at CoRSU Rehabilitation Hospital in Entebbe, a city from central Uganda.

“I kept paying in installments every month,” she says. “At one point I sold my cow for 2 million and paid the rest.”

Mubeezi says the fundraising council should be sympathetic to those who cannot afford to pay. But she thinks the board should consider tougher consequences to recover the funds for those in employment who have defaulted on their loans or who have formally requested adjusted repayment terms. She wants the next generation to benefit from the program.

But Ssekito says if the government forces him to repay his loan now, he won’t be able to cover his basic needs, like food and clothing.

He still hopes to find a teaching job now that schools have reopened. They had been closed since March 2020 due to the pandemic. The student loan plan should continue, he says, but with much stronger guidance for applicants.

“Those considering getting a loan should start planning earlier how to pay, like starting a small business so it grows as you study,” he says, “not just waiting to find a job.”

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Free Student Debt Relief Workshop to be held January 20-21 https://pconlyyazilim.com/free-student-debt-relief-workshop-to-be-held-january-20-21/ Mon, 17 Jan 2022 00:18:39 +0000 https://pconlyyazilim.com/free-student-debt-relief-workshop-to-be-held-january-20-21/ For the Hub City Times MADISON — The Wisconsin Department of Financial Institutions (DFI) and the Wisconsin Department of Agriculture, Commerce, and Consumer Protection (DATCP) are hosting free online student debt relief workshops on 20 and January 21. These workshops will help student borrowers prepare for the end of the federal student loan payment break […]]]>

For the Hub City Times

MADISON — The Wisconsin Department of Financial Institutions (DFI) and the Wisconsin Department of Agriculture, Commerce, and Consumer Protection (DATCP) are hosting free online student debt relief workshops on 20 and January 21. These workshops will help student borrowers prepare for the end of the federal student loan payment break on May 1.

“With the resumption of student loan repayments in May, it is more important than ever for borrowers to explore their student loan repayment options and develop a repayment plan today,” the DFI Secretary said. , Kathy Blumenfeld. “Borrowers should take the time now while payments are still on hold to review repayment options such as income-driven repayment plans, which can lower monthly payments, and verify their eligibility for student loan forgiveness. .”

The workshops will also show how to avoid scams.

“As student loan repayments resume, borrowers should watch for dishonest offers of loan forgiveness or consolidation savings from debt relief scammers,” said DATCP Secretary Randy Romansky. “Borrowers with questions should attend these informational workshops to learn about the many resources consumers can access without paying a fee.”

To attend the “Student Debt Relief Workshop: How to Avoid Scams, Use Free Repayment Tools, and Save Money” on January 20 from 6-7:30 p.m. and January 21 from 11:30 a.m. to 1 p.m., visit datcp.wi .gov on the homepage and look under “Press Releases.”

Student borrowers can find additional free repayment resources at LookForwardWI.gov. Student borrowers who have been the victim of a scam should report it by filing a complaint online, emailing datcphotline@wisconsin.gov, or calling the DATCP Consumer Protection Hotline at 800-422-7128 .

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To help Pennsylvanians, Biden must provide student loan debt relief https://pconlyyazilim.com/to-help-pennsylvanians-biden-must-provide-student-loan-debt-relief/ Sun, 16 Jan 2022 16:37:36 +0000 https://pconlyyazilim.com/to-help-pennsylvanians-biden-must-provide-student-loan-debt-relief/ Fourteen percent of people in our state have student loan debt. Forgiveness of these debts could be a game-changer for residents of Pennsylvania. Two years ago, in the heat of the 2020 Democratic presidential nomination, then-candidate Joe Biden outlined a plan for student debt relief: $10,000 in canceled federal loans for all borrowers. Biden’s proposal […]]]>

Fourteen percent of people in our state have student loan debt. Forgiveness of these debts could be a game-changer for residents of Pennsylvania.

Two years ago, in the heat of the 2020 Democratic presidential nomination, then-candidate Joe Biden outlined a plan for student debt relief: $10,000 in canceled federal loans for all borrowers.

Biden’s proposal also called on graduates of public universities and historically black colleges and universities who earned less than $125,000 a year to have all of their federal debt eliminated. Additionally, Biden promised to expand access and reduce payments for income-based reimbursement plans.

Following:Student loans: the company will cancel a debt of 1.7 billion dollars

Following:Student loans to stay on break

Following:Pennsylvania exempts canceled student loans from taxes

As Biden comes to the end of his first year in office, it’s time for him to deliver on his promises to a generation of Americans struggling with student debt. This would have a huge impact on Pennsylvania, where 14% of the population has an outstanding federal student loan. According to an analysis by the Institute for College Access and Success, Pennsylvania’s average student loan debt for the Class of 2020 is $39,375, the third highest in the nation.

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Rising inflation adds pain to student loan debt https://pconlyyazilim.com/rising-inflation-adds-pain-to-student-loan-debt/ Fri, 14 Jan 2022 19:47:16 +0000 https://pconlyyazilim.com/rising-inflation-adds-pain-to-student-loan-debt/ Student borrowers will face serious pressure this spring when a federal moratorium on their debt repayments expires amid soaring inflation. Tens of millions of Americans are preparing to start repaying their student loans for the first time since March 2020, after the fastest annual rise in consumer prices since 1982. Costs for food, housing and […]]]>

Student borrowers will face serious pressure this spring when a federal moratorium on their debt repayments expires amid soaring inflation.

Tens of millions of Americans are preparing to start repaying their student loans for the first time since March 2020, after the fastest annual rise in consumer prices since 1982.

Costs for food, housing and other essentials are rising as millions of Americans feel the crushing weight of student debt.

“People’s budgets are already squeezed by rising food and heating prices. Suddenly hitting people with a student loan payment averaging $400 a month would be a double whammy,” said Debt Collective organizer Thomas Gokey.

Consumer prices rose 7% in December from the same month a year earlier, marking the fastest annual price rise in nearly 40 years. High inflation is a huge political challenge for President BidenJoe BidenSunday shows preview: Democrats fight for voting rights bill comes to a head David Weil: Wrong man, wrong place, wrong time and Democrats preparing for the midterm elections, and advocates have warned that the lack of action to write off student loan debt will also follow them down the trail.

During his 2020 presidential run, Biden campaigned to forgive at least $10,000 in federal student loans per person. But Progressives have called on Biden to forgive up to $50,000 of federally held student debt per borrower.

Rising inflation has fueled more calls for Biden to eliminate student debt through executive action.

“With inflation people are already struggling and then having another payment of $500, $700, $1,000 a month, I think is going to be incredibly problematic. Especially when it comes to thinking about what the administration needs to do to build grassroots enthusiasm in 2022 and 2024, especially among young people. I think its failure to deliver on its promises for this key demographic is going to be incredibly problematic,” said Joseph Geevarghese, executive director of Our Revolution.

As the White House faces widespread calls for student debt cancellation, Biden has pushed Congress to pass legislation paving the way for massive cancellation. But, with his party’s tight control in the Senate, Democrats are looking to Biden to use his executive authority to write off the debt.

Top Democrats, including Senate Majority Leader Charles SchumerChuck SchumerThe Courage of Kyrsten Sinema, Washington’s Hypocrisy and the Politics of Rage Joe Biden’s Disastrous 48 Hours Biden’s Desperate Speech to Keep Minority Voters MORE (DN.Y.), argue that Biden has the power to forgive student loan debt himself.

Last spring, White House officials called on the Department of Education to produce a memo on Biden’s legal authority in the matter. The White House and the agency did not release further information on the status of the memo when pressed by The Hill.

About 43 million Americans owe a collective amount of about $1.6 trillion in student loans to the federal government.

In Biden’s first year in office, nearly $12 billion in student loans were forgiven for more than half a million borrowers, but only in some cases. This includes borrowers with total and permanent disabilities, those who attended now defunct schools, or government workers.

Biden also extended the temporary pause on federal student loans and interest accrual through early May, waiving the previously set Jan. 31 date to lift the student loan forbearance.

Some experts have played down concerns about the financial burden the majority of borrowers will face when federal student loan repayments resume in May.

In an interview, Mark Kantrowitz, vice president of research at Saving For College, highlighted employment trends as the economy recovers.

“The people most affected by the economic disruption of the pandemic are not people with college degrees. Unemployment rates among people with college degrees are much lower than the rest of the population,” Kantrowitz said.

The unemployment rate for adults 25 and older with a four-year college degree was 2.1% in December, according to the Labor Department, but 4.6% of job seekers with only a high school diploma were unemployed.

Sandy Baum, nonresident senior fellow for the Urban Institute’s Center on Education Data and Policy, argued that borrowers with a bachelor’s degree are “significantly more likely to have worked remotely and not missed a beat and lost no income”.

But Baum told The Hill that while many borrowers have ‘income capable of repaying their loans’, there are others who do not, while pointing the finger at students attending outdated schools and those who are permanently disabled.

She and Kantrowitz also recognized the need for officials to address racial disparities in student loan numbers.

“Black student debt is a huge problem because black students disproportionately come from families, not only with lower incomes, but with lower wealth,” Baum said.

Discrimination in the job market is also a major factor, she continued, pointing out that black bachelor’s degree holders continue to earn less than their white counterparts despite possessing the same skills and qualifications.

The Department of Education pointed to Biden extending the temporary pause in federal student payments as “much needed relief” to borrowers when asked about the impact of high inflation on borrowers.

The ministry is committed to helping borrowers when payments resume.

“As payments resume, the Department will work to ensure that no borrower is forced into making a payment they cannot afford by helping borrowers enroll in repayment plans. income-oriented or take advantage of other options to deal with their financial difficulties,” a spokesperson said. .

While cash-strapped borrowers or those with certain government careers may be able to enroll in forgiveness or repayment programs, those who do not will face another barrier to price increase.

A White House official, asked about rising inflation and its impact on borrowers, pointed to Biden’s plan to cut prices by cracking down on meat processors and leading the biggest release of reserves of oil in history.

“The president knows the kind of pressure that can put on working families, which is why he’s using every tool at his disposal to drive down those prices,” the official told The Hill.

Even so, these efforts could take months or even years to bring prices down and only in certain sectors of the economy. Economists say Biden has little direct ability to untangle the tangle of supply chain issues, hiring challenges and pandemic hurdles that are driving up inflation.

The Federal Reserve is also set to start raising interest rates to calm inflation as early as March. But even lower inflation would still leave borrowers cash-strapped in the face of high prices.

Natalia Abrams, president and founder of the Student Debt Crisis Center, argued that acting to forgive student loans is how the president can help Americans deal with high inflation.

“One of the best ways to bring prices down for families and for borrowers is to cancel student debt and beyond that, to continue the pause until we are really out of this pandemic,” said she declared.

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Navient settlement cancels student loan debt for thousands https://pconlyyazilim.com/navient-settlement-cancels-student-loan-debt-for-thousands/ Thu, 13 Jan 2022 21:09:52 +0000 https://pconlyyazilim.com/navient-settlement-cancels-student-loan-debt-for-thousands/ Californians will receive hundreds of millions of dollars in student loan relief in a multi-state settlement against one of the nation’s largest private lenders. California and dozens of other states have settled with Navient over allegations of improper lending and collection practices. Navient will offer $95 million in restitution to borrowers and cancel $1.7 billion […]]]>

Californians will receive hundreds of millions of dollars in student loan relief in a multi-state settlement against one of the nation’s largest private lenders.

California and dozens of other states have settled with Navient over allegations of improper lending and collection practices. Navient will offer $95 million in restitution to borrowers and cancel $1.7 billion in private debt for borrowers across the country.

About $11.5 million of direct restitution and $261 million of private debt forgiveness will go to Californians, according to the California attorney general’s office.

Navient will also have to follow strict lending and collections guidelines, including requiring appeals officers to outline how borrowers can reduce or stop payments, training specialists to work with at-risk borrowers, and limiting certain late fees.

In announcing the settlement, California Attorney General Rob Bonta called on the federal government to act on student loan debt.

“There is a $1.7 trillion student debt crisis in our country,” Bonta said at a settlement news conference on Thursday. “We need the companies responsible for servicing federal loans to do better. And we need decisive action from Congress and the Department of Education to tackle the full extent of this problem.

Several states filed suit against the lender in 2017; California joined in 2018.

Bonta’s office said Navient, which was formed when lender Sallie Mae split into two entities in 2014, violated California law by pushing borrowers into expensive long-term payment plans that increased costs. interests. Navient also misled consumers by withholding information about income-based reimbursement programs, among other things, attorneys general said.

Navient has denied the allegations, with its chief legal officer saying the company “focuses and has continually focused on helping student borrowers understand and select the right payment options to meet their needs.”

“The company’s decision to resolve these matters, which were based on unsubstantiated claims, allows us to avoid the additional burden, expense, time and distraction that prevails in court,” the director said Thursday. Navient Legal, Mark Heleen.

“In fact, we’ve increased enrollment in income-contingent repayment plans and reduced default rates, and every year hundreds of thousands of borrowers we support successfully repay their student loans,” Heleen added.

About 357,000 borrowers will receive $260 in restitution, including 43,000 Californians. About 66,000 borrowers will have their private loan debt erased, including more than 7,400 Californians.

Navient will notify people whose debt is canceled and refund the money for payments made after June 30, 2021, Bonta’s office said, directing consumers to a website dedicated to the settlement. Those eligible for the restitution payment will receive a postcard from the Attorney General’s Settlement Administrator this spring. Eligible borrowers will receive a check, Bonta said, and need not take action.

Most borrowers would have taken private student loans from the company when it was still Sallie Mae between 2002 and 2010, according to Navient.

Among other administrative changes to strengthen payment assistance information, Navient is to notify borrowers of loan forgiveness through programs in the Civil Service Loan Forgiveness Program, which provides assistance to public servants in sectors nonprofit or government.

Many of those affected by Navient’s lawsuit took out loans to attend for-profit schools, another target of several lawsuits Bonta has filed.

“Many of us have worked hard to achieve our college dreams,” Bonta said. “But for too many people, those dreams have become horrible nightmares trapped by crushing student debt.”

Bonta and other state attorneys general have sued the United States Department of Education for defaulting on student loans who attended for-profit and defunct colleges, relaxing regulations for these institutions, and changes to borrower regulations.

Attorneys general from the following 38 states plus the District of Columbia were part of the lawsuit against Navient: Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Hawaii, Iowa, Illinois, Indiana, Kansas, Kentucky , Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Nebraska, Nevada, New Jersey, New Mexico, New York, North Carolina, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Vermont, Virginia, Washington, West Virginia and Wisconsin.

This story was originally published January 13, 2022 9:59 a.m.

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Crushing student debt prompts parents to postpone retirement https://pconlyyazilim.com/crushing-student-debt-prompts-parents-to-postpone-retirement/ Tue, 11 Jan 2022 19:02:29 +0000 https://pconlyyazilim.com/crushing-student-debt-prompts-parents-to-postpone-retirement/ Patricia Rizzo, 62, owes the federal government more than $ 126,000. But what started out as an investment in her daughter’s future is affecting her own prospects. A single mother, she earns about $ 40,000 a year working in a drug addiction clinic in New Jersey. She hopes to get an addiction counseling certification soon […]]]>

Patricia Rizzo, 62, owes the federal government more than $ 126,000. But what started out as an investment in her daughter’s future is affecting her own prospects.

A single mother, she earns about $ 40,000 a year working in a drug addiction clinic in New Jersey. She hopes to get an addiction counseling certification soon that could increase her salary, but admits that she is far from zeroing her balance.

“What I’m looking for right now is paying it over 20 years, which will make me 82,” Rizzo said.

She joins a growing list of parents aged 60 and over who are delaying their retirement because of Parent PLUS Loans, a program started in the early 1980s to help parents pay for their children’s college education. A recent NerdWallet survey found that for up to 26% of parents or guardians with Parent PLUS, also known as Direct PLUS, loan debt won’t go down as originally planned.

Rizzo said she took out seven Parent PLUS loans to pay for her daughter’s eight semesters at Skidmore College in New York City.

Patricia Rizzo with her daughter’s Skidmore College diploma.News now

She said providing a quality education for her daughter was so important that she moved to the affluent New Jersey town of Ridgewood so that Emily, now 26, could attend public schools in high level. Rizzo encouraged his daughter to attend the best college possible, no matter the cost.

“I felt like going to college, I didn’t want to hurt my kids,” said Rizzo, who also has a son, adding that she had attended workshops at her daughter’s high school to learn more about the options financial aid to the university.

What started as a loan plan for middle-income families has grown into a large-scale program with few restrictions, said Rachel Fishman, deputy director of education policy research at New America, a Washington think tank. .

“You can see parents easily take out tens of thousands of dollars in loans each year,” she said. “And then at the end of an undergraduate career, they can easily rack up over $ 100,000.”

Fishman said she is seeing more and more low- and middle-income families take over.

“What is very different is that this is not a co-signed loan,” she said. “It’s a loan that a parent takes out in their own name; the student has no responsibility to repay this loan.

To qualify for a Parent PLUS loan, borrowers must undergo a credit check, but there is essentially no cap on the amount they can borrow, and parents or guardians can withdraw up to the full cost. of schooling.

“Just because a parent gets the loan doesn’t mean the federal government thinks that parent can actually repay the loan,” Fishman said. “All they did was see if the parent had a negative credit history or not. ”

Parent PLUS loan interest rates are set based on the year they were taken out, but many families borrow more than they can afford, she said.

From 2005 to 2015, the average amount of student debt for borrowers aged 60 and over doubled, according to the Consumer Financial Protection Bureau. Most of this debt goes to their children or grandchildren.

In Rizzo’s case, the interest on his seven loans ranges from 6 to 7 percent. She has not started making payments due to the rising cost of living, other debts and the pandemic. She said she intended to pay but hopes relief will materialize.

After several extensions, the Biden administration suspended student loan payments until May 1, which, in part, freezes interest rates at zero.

Historically, efforts to reduce the eligibility ladder for Parent PLUS loans have been quickly pushed back.

Some critics and experts claim that eliminating the program in particular or student debt in general would cost the government billions, if not billions of dollars. An Obama administration effort to reduce the number of eligible Parent PLUS borrowers sparked a backlash from historically black colleges and universities, who claimed it had affected enrollment. This decision sparked threats of prosecution and much criticism.

Emily, Patricia Rizzo’s daughter. Courtesy of Patricia Rizzo

The impact of Parent PLUS loans on borrowers from various walks of life is hard to quantify, experts say, but the reality is that it leaves many parents and guardians heavily in debt. While officials debate whether to partially or fully write off student debt, a loan can end without repayment in several ways.

They include a discharge, which usually occurs when a borrower dies, is permanently disabled or closes the school where the loans were received; and postponement or cancellation, which are generally related to public service jobs or teacher loan forgiveness programs.

With student loan cancellation pending, Fishman encourages those with debt to prepare, plan, and seek help, including exploring the possibility of a loan consolidation.

“Always be very careful when it comes to refinancing a federal loan,” she said. “A student is unable to refinance a Parent PLUS loan to a federal consolidation loan, so they should look to the private market for this type of consolidation. “

Rizzo said her daughter, a 2018 graduate and now a journalist, was eager to help pay off the loans, but the mother wasn’t too worried about it.

“I can’t say I regret it because my daughter has accomplished so much right now,” she said. “I mean she just got the best education.”

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I have $ 80,000 in student loan debt for two degrees that I can’t even use. How can I repay these loans? https://pconlyyazilim.com/i-have-80000-in-student-loan-debt-for-two-degrees-that-i-cant-even-use-how-can-i-repay-these-loans/ Mon, 10 Jan 2022 16:41:00 +0000 https://pconlyyazilim.com/i-have-80000-in-student-loan-debt-for-two-degrees-that-i-cant-even-use-how-can-i-repay-these-loans/ Getty Images Question: “I have over $ 80,000 in loan debt for my bachelor’s and master’s degrees. Now I am disabled and unable to use my diplomas. My current loans are on hold, but I currently have no income due to unemployment. Any advice would be greatly appreciated. Want help with a student loan or […]]]>

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Question: “I have over $ 80,000 in loan debt for my bachelor’s and master’s degrees. Now I am disabled and unable to use my diplomas. My current loans are on hold, but I currently have no income due to unemployment. Any advice would be greatly appreciated.

Want help with a student loan or other debt? Send an email to chill@marketwatch.com.

Responnse: Student loans ideally help carry out work which, in turn, is added to income to pay off the advance. Disability due to illness or accident that makes it impossible to work turns the equation upside down. Here’s what the pros – you and those in a similar situation to you – might consider to help ease the burden of student debt, from canceling the loan to changing your repayment structure.

Tax gurus agree that in your case there are two main variables at play: what is your type of loan (federal or private) and how serious is your disability (permanent or temporary). “Not being able to use your degrees and never being able to work again are two different issues,” says Leslie Tayne, finance and debt resolution lawyer, founder and CEO of Tayne Law Group. Either way, take action. With the resumption of student loan repayments in May 2022, a certain urgency is brewing. “You can’t wait for the government to act,” she said, “and hope that you’re going to be part of a group where they pay off the loans. “

If you are unable to work long term, you may be eligible for a student loan forgiveness through total and permanent disability (TPD) release. This program saves you from having to repay a Federal Direct Loan, Federal Family Education Loan Program (FFEL) loan, and / or Federal Perkins loan or fulfill a TEACH Grant service obligation. According to financial aid expert Mark Kantrowitz, author of several books, including “How to appeal for more university financial aid”. Eligibility requires proof that you are totally and permanently disabled, and this can come from the Department of Veterans Affairs (VA), Social Security Administration (SSA), or a medical certificate. The eligibility requirements include that the disability has lasted for five years or will last for five years or will eventually result in death.

But beware: approving the landfill isn’t the end of the story. “There is the possibility of a three-year post-discharge follow-up period during which earned income must be less than 100% of the poverty line for a family of two,” says Kantrowitz.

Some good news: The Biden administration “made it easier for older disabled borrowers,” says Andrew Pentis, loan expert and certified student loan advisor at StudentLoanHero. In August, more than 323,000 student borrowers with total and permanent disabilities had their debt canceled, representing relief of $ 5.8 million. The change applied to borrowers identified through the SSA data match.

If you don’t qualify for PDT, consider signing up for an income-based repayment plan that allows you to set your monthly federal student loan payment at an amount you can afford based on of your earned income. This would keep your monthly payments at $ 0 as long as you have no income. “It would give you a kind of temporary respite to make sure your loans stay up to date,” says Pentis. “You avoid delinquency and all the negative effects that result from it. StudentAid.gov offers in-depth reviews of loan cancellation and release programs.

But what if you are a private student loan borrower? Go to the source of your loan – bank, credit union, private lender – to learn about disability debt forgiveness. “It’s really a lender-by-lender case,” says Pentis. “Each lender has their own application process and their own policy. In all cases, you will need to show proof of your disability.

Resorting to a plan B, as in the case of bankruptcy, can be a long-term avenue to explore. “The bankruptcy court looks at certain factors in determining whether the repayment of student loans is causing undue hardship, thereby justifying the cancellation of part or all of the student loan,” says Tayne. The circumstances are difficult to prove. “The odds are long and slim,” says Tayne, “but it may be a possible option. “

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3 tips to reduce your student loan debt this year https://pconlyyazilim.com/3-tips-to-reduce-your-student-loan-debt-this-year/ Wed, 05 Jan 2022 13:09:50 +0000 https://pconlyyazilim.com/3-tips-to-reduce-your-student-loan-debt-this-year/ Do you have a death wish for your student debt in 2022? Paying off debt – student loans or otherwise – is a permanent fixture on New Year’s resolution lists. But like many resolutions, it’s easy to lose motivation as the year progresses, especially if you don’t. no clear plan of attack. These measures, which […]]]>

Do you have a death wish for your student debt in 2022?

Paying off debt – student loans or otherwise – is a permanent fixture on New Year’s resolution lists. But like many resolutions, it’s easy to lose motivation as the year progresses, especially if you don’t. no clear plan of attack.

These measures, which benefit from the current freeze on federal loans until May 1, will help you develop that plan.

Here’s how to pay off your student debt faster this year.

Take advantage of the last days of your 0% interest rate

Federal student loan payments were scheduled to resume in February, after a freeze of almost two years. But borrowers received good news ahead of the holidays: the payment break and interest waiver will last three more months. This means that any amount you pay off before may help reduce your debt more than it would later in the year, when it is eaten up by interest.

“A 0% interest opportunity rarely presents itself,” says Dan Rooker, financial planner and certified student loan professional.

How much of your total debt you can reduce depends, of course, on how much you owe and your interest rate after pandemic relief ends in May. (All loans will be at the same interest rate as before the pandemic.)

But, as an example, let’s say you owe $ 40,000 with an interest rate of 6%, and you’re on track to pay it off in 5 years. If you make a one-time payment of $ 4,000 and start making the same monthly payments of $ 773 again after the forbearance period ends, you will pay off your debt 6 months faster. Maybe more motivating? You will save $ 1,300 in interest.

“You’ll be swimming against the tide again starting in May,” Rooker notes.

Make multiple payments per month

Do you know the saying that says we are happier? Channel that when it comes to the frequency of student loan repayments – the more you earn, the easier it will be to reduce your balance (and, you know, the happier you’ll be when you finally hit that long-awaited repayment date).

Paying even $ 50 more per month on our hypothetical $ 40,000 debt will help you pay it off four months sooner. The easiest way to do this is to schedule your payments to coincide with the days you get paid, so that you can put money toward your debt before you’re tempted to spend it elsewhere. Rooker recommends automating this through your checking account or payroll provider.

“You just have to make the decision once and then let the technology work for you,” he says.

Quick tip: Make sure you tell your lender that you want your additional payments to go toward the principal balance, and not as a prepayment for the next month.